NO. 211. AN ACT RELATING TO PLACING
A SECURITY FREEZE ON A CREDIT REPORT.

(S.267)

It is hereby enacted by the General Assembly of the State of
Vermont:

Sec. 1. 9 V.S.A. § 2480a is amended to read:

§ 2480a. DEFINITIONS

For
purposes of this subchapter:

* * *

(7) “Security freeze” means a
notice placed in a credit report, at the request of the consumer who is a
victim of identity theft, pursuant to section 2480h of this title.

Sec. 2. 9 V.S.A. § 2480b is
amended to read:

§ 2480b. DISCLOSURES TO
CONSUMERS

* * *

(c) Any time a credit reporting
agency is required to make a written disclosure to consumers pursuant to 15
U.S.C. § 1681g, it shall disclose, in at least 12 point type, and in bold type
as indicated, the following notice:

* * *

(3) If you believe a law
regulating consumer credit reporting has been violated, you may file a
complaint with the Vermont Attorney General’s Consumer Assistance Program, 104
Morrill Hall, University of Vermont, Burlington, Vermont 05405.

Vermont
Consumers Who Are Victims of Identity Theft

Have the Right to
Obtain a Security Freeze

You may obtain a security freeze
on your credit report at no charge if you are a victim of identity theft and
you submit a copy of a police report, investigative report or complaint you
have filed with a law enforcement agency about unlawful use of your personal
information by another person. You have a right to place a “security
freeze” on your credit report pursuant to 9 V.S.A. § 2480h at no charge
if you are a victim of identity theft. All other Vermont
consumers will pay a fee to the credit reporting agency of up to $10.00 to
place the freeze on their credit report. The security freeze will prohibit
a credit reporting agency from releasing any information in your credit report
without your express authorization. A security freeze must be requested in
writing by certified mail.

The security freeze is designed to help
prevent credit, loans, and services from being approved in your name without
your consent. However, you should be aware that using a security freeze to
take control over who gains access to the personal and financial information in
your credit report may delay, interfere with, or prohibit the timely approval
of any subsequent request or application you make regarding new loans, credit,
mortgage, insurance, government services or payments, rental housing,
employment, investment, license, cellular phone, utilities, digital signature,
internet credit card transaction, or other services, including an extension of
credit at point of sale.

When you place a security freeze on
your credit report, within ten business days you will be provided a personal
identification number or password to use if you choose to remove the freeze on
your credit report or authorize the release of your credit report for a
specific party, parties or period of time after the freeze is in place. To
provide that authorization, you must contact the credit reporting agency and
provide all of the following:

(1) The unique personal
identification number or password provided by the credit reporting agency.

(2) Proper identification to
verify your identity.

(3) The proper information
regarding the third party or parties who are to receive the credit report or
the period of time for which the report shall be available to users of the
credit report.

A credit reporting agency may
charge a fee of up to $5.00 to a consumer who is not a victim of identity theft
to remove the freeze on your credit report or authorize the release of your
credit report for a specific party, parties, or period of time after the freeze
is in place. For a victim of identity theft, there is no charge when the
victim submits a copy of a police report, investigative report, or complaint
filed with a law enforcement agency about unlawful use of the victim’s personal
information by another person.

A credit reporting agency that
receives a request from a consumer to lift temporarily a freeze on a credit
report shall comply with the request no later than three business days after
receiving the request.

A security freeze will not apply
to “preauthorized approvals of credit.” If you want to stop receiving
preauthorized approvals of credit, you should call [INSERT PHONE NUMBERS] [ALSO
INSERT ALL OTHER CONTACT INFORMATION FOR PRESCREENED OFFER OPT OUT.]

A security freeze does not apply to
a person or entity, or its affiliates, or collection agencies acting on behalf
of the person or entity with which you have an existing account that requests
information in your credit report for the purposes of reviewing or collecting
the account, provided you have previously given your consent to this use of
your credit reports. Reviewing the account includes activities related to
account maintenance, monitoring, credit line increases, and account upgrades
and enhancements.

You have a right to bring a civil
action against someone who violates your rights under the credit reporting
laws. The action can be brought against a credit reporting agency or a user of
your credit report.”

Sec. 3. 9 V.S.A. § 2480h(a)
is amended to read:

(a) Any Vermont
consumer may place a security freeze on his or her credit report. A credit
reporting agency shall not charge a fee to victims of identity theft but may
charge a fee of up to $10.00 to all other Vermont consumers for placing and
$5.00 for removing, removing for a specific party or parties, or removing for a
specific period of time after the freeze is in place a security freeze on a
credit report. Aconsumer who has been the victim of identity theft
may place a security freeze on his or her credit report by making a request in
writing by certified mail to a credit reporting agency with a valid copy of a
police report, investigative report, or complaint the consumer has filed with a
law enforcement agency about unlawful use of his or her personal information by
another person. A credit reporting agency shall not charge a fee for
placing, removing, or removing for a specific party or parties a security
freeze on a credit reportAll other Vermont consumers may place a
security freeze on his or her credit report by making a request in writing by
certified mail to a credit reporting agency. A security freeze shall
prohibit, subject to the exceptions in subsection (l) of this section, the
credit reporting agency from releasing the consumer’s credit report or any
information from it without the express authorization of the consumer. When a
security freeze is in place, information from a consumer’s credit report shall
not be released to a third party without prior express authorization from the
consumer. This subsection does not prevent a credit reporting agency from
advising a third party that a security freeze is in effect with respect to the
consumer’s credit report.

Sec. 4. 9 V.S.A. §
2480h(l)(10) is added to read:

(10) Any property and casualty
insurance company for use in setting or adjusting a rate or underwriting for
property and casualty insurance purposes.

Sec. 5. 8 V.S.A.
§ 4704a is added to read:

4704a. RERATING AFTER USE
OF ERRONEOUS CREDIT

INFORMATION

If
it is determined through the reinvestigation process set forth in the federal
Fair Credit Reporting Act, 15 U.S.C. § 1681i(a)(5), that credit information
relied upon by an insurer was incorrect, and if an insurer receives notice of
that determination from either the consumer-reporting agency or from the
insured who has provided written documentation from the consumer-reporting
agency, within one year of the date after the insured is no longer a customer
of the insurer, such insurer shall reunderwrite and rerate the consumer within
30 days after receiving the notice. After reunderwriting or rerating the
insured the insurer shall make any adjustments necessary consistent with its
underwriting and rating guidelines. If an insurer determines that the insured
has overpaid the premium the insurer shall refund to the insured the amount of
overpayment.